While Monster-Payday-Loan.co.uk originated as short-term loans that matured when you received your wage, today's definition of payday loans is simply any short-term, unsecured loan. These loans are best used to cover temporary cash setbacks. For example, if your car unexpectedly breaks down, you may find yourself struggling to pay the repair bill. In this case, taking out a payday loan is one way to cover your emergency expenses.